Acadia Healthcare Company Inc (ACHC)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Inventory turnover 365.51 338.79 331.39 327.75 327.46 342.27 326.40 326.25 314.06 172.16 211.42 251.86 281.90 370.17 389.59 377.50 447.69 486.02 342.82 336.11
Receivables turnover 6.65 5.39 6.60 6.24 7.18 6.83 7.13 6.88 7.27 7.12 7.18 8.68 9.69 8.46 8.44 8.11 8.13 7.57 7.72 8.04
Payables turnover 12.41 12.38 12.10 13.77 15.91 14.32 14.25 14.93 15.25 8.66 11.31 12.60 15.57 14.46 15.45 13.68 20.21 16.03 18.01 17.62
Working capital turnover — — 18.45 16.44 21.57 20.41 31.24 19.41 24.54 13.28 16.08 22.00 2.32 19.74 35.62 — 37.69 37.19 71.34 103.80

Based on the activity ratios of Acadia Healthcare Company Inc provided in the table, the following analysis can be made:

1. Inventory Turnover:
The inventory turnover ratio for Acadia Healthcare Company Inc is consistently reported as 0.00 across all quarters, indicating that the company has not been able to effectively manage and sell its inventory during the periods. A low or zero inventory turnover ratio may suggest issues with inventory management, overstocking, or obsolete inventory.

2. Receivables Turnover:
The receivables turnover ratio shows a fluctuating trend, ranging from 5.97 to 7.60 over the observed quarters. This ratio indicates that Acadia Healthcare Company Inc is collecting its accounts receivable approximately 6 to 8 times a year. A higher receivables turnover ratio suggests effective credit policies and efficient collection practices.

3. Payables Turnover:
The payables turnover ratio is consistently reported as 0.00 across all quarters, suggesting that there is a lack of data available to calculate this ratio. This could be due to the nature of the company's payables or the structure of its financial reporting.

4. Working Capital Turnover:
The working capital turnover ratio demonstrates a varying pattern, with significant fluctuations across the quarters. This ratio reveals how efficiently Acadia Healthcare Company Inc is utilizing its working capital to generate sales revenue. The decreasing trend in this ratio over time suggests potential inefficiencies in managing working capital to support sales activities.

In summary, the analysis of Acadia Healthcare Company Inc's activity ratios indicates areas for potential improvement, particularly in inventory management and working capital utilization, to enhance operational efficiency and financial performance.

Average number of days

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days 1.00 1.08 1.10 1.11 1.11 1.07 1.12 1.12 1.16 2.12 1.73 1.45 1.29 0.99 0.94 0.97 0.82 0.75 1.06 1.09
Days of sales outstanding (DSO) days 54.89 67.73 55.29 58.48 50.83 53.43 51.20 53.05 50.22 51.23 50.82 42.05 37.68 43.15 43.25 45.00 44.88 48.21 47.30 45.37
Number of days of payables days 29.42 29.49 30.16 26.50 22.95 25.49 25.62 24.45 23.94 42.15 32.27 28.96 23.44 25.25 23.62 26.68 18.06 22.77 20.27 20.72

The Days of Sales Outstanding (DSO) for Acadia Healthcare Company Inc have fluctuated over the past eight quarters, ranging from 48.04 days in Q4 2022 to 61.15 days in Q3 2023. Generally, lower DSO values suggest that the company is collecting revenue more swiftly, while higher values may indicate delays in collecting accounts receivable. It is worth noting the increase in DSO from Q4 2022 to Q1 2023 followed by a decrease in Q2 and Q3 2023, suggesting potential improvements in the company's collection processes.

On the other hand, the Days of Inventory on Hand (DOH) for Acadia Healthcare were not provided for any of the quarters. This ratio is crucial for understanding how efficiently the company manages its inventory levels. Without this information, it is challenging to assess the company's inventory turnover and inventory management practices.

Lastly, the data for the Number of Days of Payables was not provided, making it impossible to analyze the company's efficiency in managing its payables. This ratio is essential for assessing the company's liquidity position and how quickly it pays off its suppliers.

In conclusion, while the DSO data provides some insights into Acadia Healthcare's accounts receivable management, the lack of information on DOH and payables days limits a comprehensive analysis of the company's overall activity ratios.

Long-term

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 1.26 1.30 1.30 1.31 1.30 1.29 1.28 1.29 1.25 1.31 1.46 1.56 1.74 0.94 0.94 0.95 1.98 0.93 0.92 0.91
Total asset turnover 0.53 0.52 0.52 0.52 0.51 0.50 0.49 0.48 0.46 0.47 0.53 0.57 0.43 0.43 0.44 0.45 0.43 0.44 0.43 0.43

Acadia Healthcare Company Inc's long-term activity ratios indicate the efficiency with which the company is utilizing its assets to generate revenue. The fixed asset turnover ratio has been relatively stable, hovering around 1.33 over the past few quarters. This suggests that the company is generating approximately $1.33 in sales for every $1 invested in fixed assets. The slight variations in this ratio indicate consistent performance in efficiently using fixed assets to drive revenue.

On the other hand, the total asset turnover ratio has shown a slight upward trend, increasing from 0.49 in Q1 2022 to 0.55 in Q4 2023. This improvement indicates that Acadia Healthcare is generating more revenue for every dollar invested in total assets. The increasing trend in this ratio suggests that the company's overall asset utilization efficiency has been improving, which is a positive indicator of operational performance and productivity.

Overall, Acadia Healthcare Company Inc's long-term activity ratios demonstrate efficient management of both fixed and total assets to drive sales, with a consistent performance in fixed asset turnover and an improving trend in total asset turnover over the quarters analyzed.